Need more proof that we need a strong, independent watchdog for consumers as part of the financial reform bill? We just put out a report with the National Consumer Law Center and the Consumer Federation of America that shows consumers in most parts of the country are vulnerable to small loan rip-offs.
The report grades states on how well they protect consumers from excessive interest charges on a number of different small loan products: payday loans; auto title loans; six-month, $500 unsecured installment loans; and one-year, $1,000 unsecured installment loans
We found that only Arkansas, Connecticut, District of Columbia, Maryland, New Jersey, New York, Pennsylvania, and Vermont protect consumers against abusive lending practices for all four small dollar loan products.
States scored the worst when it came to payday loans. Thirty-six states fail to protect consumers against high cost payday loans. Thirty-one states fail to protect consumers from high-costs for six-month, $500 unsecured installment loans and twenty states fail to protect consumers against expensive auto title loans.
Consumers deserve better protection than that!
Call 1 (800) 944-6762 to tell your Senators to support a strong, independent financial watchdog for consumers as part of the financial reform bill and to oppose any amendments that would weaken it or limit the ability of states to develop even tougher safeguards for consumers.
